Budget 2026: Pakistan bets on Higher Defence Spending amid Security Challenges

Pakistan announced its federal budget of Rs18.77 trillion for the upcoming fiscal year, with a significant increase in defense spending to 3 trillion rupees, an 18% rise from the previous year. This strategic shift prioritizes national security amid regional uncertainty and multiple security challenges, including militant activity on the western border and conventional concerns on the eastern frontier. The country faces a dual-pressure environment, requiring simultaneous support for border defense, counter-insurgency, and internal stability operations, despite its defense budget being significantly lower than that of its primary regional adversary. This allocation reflects Pakistan's commitment to maintaining a minimum credible deterrence and securing its 3,300-kilometer border, even with limited resources for modernization.